Base Year for CPI-AL

The base year for calculating Consumer Price Index for Agricultural Labourers (CPI-AL) is 1986-87. CPI-AL is a measure of inflation that reflects changes in the prices of goods and services consumed by agricultural laborers in rural areas. It is used to calculate the inflation rate in rural India, which is an important indicator of the health of the agricultural sector.

Calculation of CPI-AL

The CPI-AL is calculated by taking into account the prices of a basket of goods and services consumed by agricultural laborers in rural areas. The basket of goods and services comprises of food items, fuel, clothing, housing, and other essential items. The prices of these items are collected from various locations across the country and are weighted according to the consumption patterns of agricultural laborers.

Importance of CPI-AL

CPI-AL is an important indicator of the living standards of agricultural laborers in rural areas. It helps policymakers to determine the impact of inflation on the rural population and to formulate policies to address the concerns of the agricultural sector. It is also used to adjust the wages of agricultural laborers in line with changes in the cost of living, thereby ensuring that their real wages do not decline due to inflation.

Conclusion

In conclusion, the base year for calculating CPI-AL is 1986-87. It is an important measure of inflation that reflects changes in the prices of goods and services consumed by agricultural laborers in rural areas. It helps policymakers to determine the impact of inflation on the rural population and to formulate policies to address the concerns of the agricultural sector.